CEO makes surprise bid for Eagle Logistics

CEO makes surprise bid for Eagle Logistics EGL Inc., which operates as Eagle Global Logistics, said Tuesday it received a $1.2 billion leveraged buyout offer from Chief Executive Jim Crane and private equity firm General Atlantic LLC to take the Houston-based firm private.
   Crane proposed in a letter to the board to pay $36 per share, all in cash, to acquire the entire company at a 21 percent premium over Friday's $29.78 closing stock price. Crane already owns about 18 percent of the outstanding common stock.
   Crane said other members of senior management are also partnering on the bid and would continue in their current positions once a transaction is completed. He said he would continue as chairman and CEO.
   Funding would come from equity investments from senior management and private capital managed by Greenwich, Conn.-based General Atlantic, and the rest from $1.125 billion in financing arranged by Bank of America, Goldman Sachs, Merrill Lynch, and others.
   'We clearly anticipate continuing to run the business in accordance with our current practice and maintaining the company's valuable employee base, which we view as one of its most important assets,' Crane said.
   EGL said the board has formed a special committee to review the offer and that no decisions have been made on whether to accept it.
   'There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated,' EGL cautioned.
   The proposal is the latest example of the recent focus of private equity funds in the logistics industry.